Research on China's Manufacturing Industrial Upgrading based on International Vertical Specialization Division of Labor

In the background of economic globalization and international industrial transfer,as the main form of new international division of labor,the international vertical specialization division of labor has increasingly apparent impacts on China's manufacturing industrial upgrading. Based on theoretical analysis,this paper calculates the international vertical specialization index of China's manufacturing industry. By building VAR model and the impulse response,the paper also makes an empirical study on the impacts of the international vertical specialization division of labor on China's manufacturing industrial upgrading,by use of time- series data of China's manufacturing industry from 1992 to 2008. The results show that China's manufacturing sector participation in international vertical specialization division of labor can effectively promote industrial upgrading in manufacturing,and this upgrading effect is significant at the beginning; although the effect is gradually weakened over time,but the positive role of the upgrading effect still remain.